Arch Capital Group Ltd. (NASDAQ:ACGL) is a specialty insurance company based in Bermuda. Shares appreciated after the company reported first quarter financial results that exceeded Street expectations. Book value per share grew 13% due to strong Mortgage segment margins and low catastrophe losses. After years of soft market conditions, we are starting to see firmer pricing for insurance and reinsurance, which we think could drive profitability over time. We continue to own the stock due to Arch's strong management team and underwriting discipline.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund second-quarter 2019 shareholder commentary.
This article first appeared on GuruFocus.
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